saad gulzar mp report

7/30/2019 Saad Gulzar Mp Report

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SUBMITTED BY: SAAD GULZAR TO: SIR ZAFAR MANAN Page 2

1.introduction :Falcon Cement Limited is the largest[1] cement producer in Pakistan. Its shares are

traded on the Karachi Stock Exchange, and are part of the KSE 100 Index. Its symbol in

the Karachi Stock Exchange (KSE) is. The company's highest share price was PKR

147.00, on 18 April 2008[2]

FCC cement is manufactured:

FCC cement is manufactured on international quality standards EN 197-1CEM-1 CLASS

42.5N and is approved by the Ministry of Works in the Kingdom of Bahrain.

Committed to excellence:

Committed to excellence, by providing the best quality cement in OPC and SRCvarieties, both bagged and in bulk, for a variety of applications.


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2.Vision:

We envision being the leader of the cement industry in

Pakistan, identifying and capitalizing on new opportunities in

the global market, contributing towards industrial progress

and sustainable future, while being responsible corporate

citizen to become a market leader and avail the new

opportunity with sustainability.


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3.Mission:

Falcon cement mission is to be a premium cement

manufacturing by building a professional

organization having state-of-interest-of-art

technology,


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4.SWOT matrix:The concept of determining strengths, weaknesses, threats, and opportunities is the

fundamental idea behind the SWOT model. To present the model in a more understandable

way, scholars came up with so-called SWOT matrix. SWOT matrix is only a graphicalrepresentation of the SWOT framework.

The above is a schema of how SWOT works. You start at the top level and go down to

details. When this is filled with content, it gets the shape of a matrix, such as the examplebelow:

Strengths.

1. Infrastructure is near to port.2. Large dealer network.3. Using state-of-art-technology.

Weaknesses:

1. Capital incentive industry2. High transportation cost3. Waste of material

Opportunities:

1. Competitors' are want to exits who cant meet lowest completion.2. Tactics - surprise, major contracts, and worldwide increase the demand of cement.3. Business and product development.

Threats:

1. Legislative effects by robbers.2. Obstacles faced?3. Environmental effects and climate impact.


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SO STRATEGIES:

1. Infrastructure near port can help increase the export.(S3,O5)2. By meeting the standards supply all over the world.(S1,O2)3. Reduce the cost by touching the economy of scale.(S2,O3)

WO STRATEGIES:

1.Bulk supply will reduce the transportation cost.(W3,O2)2. High productivity will increase the IRR.(W2,O1)3. Build a structure and anew plant where demand is high and will increase in future

with full potential.(W3,O4)

ST STRATEGIES:

1. Keeping less stock reduce cost of spoil goods. (S3,T4)2. Meeting with new technology and research can retain the high market share.

(S1,T2)

WT STRATEGIES:

1. Evaluation of demand with current market trend.(W2,T3)2. Use technological advancement to reduce cost of production.(W4,T5)


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5.Efe matrix for falcon cement:

KEY EXTERNAL FACTOR

WEIGHT RATING WEIGHTE

SCORE

OPPORTUNITIES

1. Market developments and penetration. 0.05 4 0.2

2. Competitors' are want to exits who cost are not lowest . 0.06 3 0.18

3. Tactics - surprise, major contracts, 0.09 2 0.18

4. Business and product development. 0.03 1 0.03

5. Information and research to make cement stronger and long lastic. 0.08 3 0.24

6. Relationship with agencies and distributors. 0.06 4 0.24

7. New markets, vertical and horizontal integration. 0.03 3 0.09

8. Export in other country. 0.04 3 0.12

9. Increase production to reduce cost and achieve economies of scale. 0.05 2 0.1

THREATS:

10. Political Instability 0.02 3 0.06

11. Legislative effects by robbers.0.01

4 0.0412. Obstacles faced? 0.04 3 0.12

13. Environmental effects and climate impact. 0.04 2 0.08

14. Competitor intention to expand their business. 0.08 2 0.16

15. Fluctuation in Market demand. 0.08 1 0.08

16. New technologies, services, ideas of competitors 0.05 4 0.2

17. Sustaining internal capabilities of surviving. 0.06 3 0.18

18. Seasonality, weather effects on stocks. 0.07 4 0.28

TOTAL 1.00 2.64


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6.Competitive profile matrix:

FALCON CEMENT FALCON CEMENT XYZ CEMENT

CRITICAL SUCCESS

FACTOR WEIGHT RATING SCORE WEIGHT RATING SCORE WEIGHT RATING SCORE

advertising 0.10 3 0.3 0.20 4 0.8 0.20 4 0.8

product quality 0.20 3 0.6 0.10 3 0.3 0.10 3 0.3

price competitiveness 0.15 4 0.6 0.10 2 0.2 0.10 2 0.2

management 0.15 4 0.6 0.20 1 0.2 0.10 1 0.1

financial position 0.10 4 0.4 0.10 3 0.3 0.15 4 0.6

customer loyalty 0.10 3 0.3 0.05 2 0.1 0.10 2 0.2

global expansion 0.10 2 0.2 0.20 1 0.2 0.10 1 0.1

market share 0.10 3 0.3 0.05 2 0.1 0.15 2 0.3

TOTAL 1 3.3 1 2.2 1 2.6


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8.Space matrix:

The STRATEGIC POSITION ACTION EVALUATION ( SPACE ) matrix is a management

tool used to analyze a company. It is used to determine what type of a strategy a company should

undertake.

SPACE matrix is a strategic management tool that focuses on strategy formulation especially as

related to the competitive position of an organization.

The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG

matrix model, industry analysis, or assessing strategic alternatives (IE matrix).

Internal strategic dimensions:

Financial strength (FS)

Competitive advantage (CA)

External strategic dimensions:

Environmental stability (ES)

Industry strength (IS)


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There are many SPACE matrix factors under the internal strategic dimension. These factors

analyze a business internal strategic position. The financial strength factors often come from

company accounting. These SPACE matrix factors can include for example return on

investment, leverage, turnover, liquidity, working capital, cash flow, and others. Competitive

advantage factors include for example the speed of innovation by the company, market niche

position, customer loyalty, product quality, market share, product life cycle, and others.

The SPACE matrix calculates the importance of each of these dimensions and places them on a

Cartesian graph with X and Y coordinates.


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The following are a few model technical assumptions:

- By definition, the CA and IS values in the SPACE matrix are plotted on the X axis.

- CA values can range from -1 to -6.

- IS values can take +1 to +6.

- The FS and ES dimensions of the model are plotted on the Y axis.

- ES values can be between -1 and -6.

- FS values range from +1 to


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9.BCG Matrix:

The Boston consulting group a leading management consulting firm develops and

popularized the growth share matrix as shown in figure.

CASH COWSare units with high market share in a slow-growing industry. These unitstypically generate cash in excess of the amount of cash needed to maintain the business.

DOGS, Though owning a break-even unit provides the social benefit of providing jobsand possible synergies that assist other business units, from an accounting point of view

such a unit is worthless, not generating \\

QUESTION MARKS are growing rapidly and thus consume large amounts of cash, butbecause they have low market shares they do not generate much cash. The result is a

large net cash consumption.

STARS are units with a high market share in a fast-growing industry. The hope is thatstars become the next cash cows. Sustaining the business unit's market leadership mayrequire extra cash, but this is worthwhile if that's what it takes for the unit to remain a

leader.
http://en.wikipedia.org/wiki/Cash_cowhttp://en.wikipedia.org/wiki/Cash_cowhttp://en.wikipedia.org/wiki/Cash_cow


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RELATIVE MARKET SHARE:

This indicates likely cash generation, because the higher the share the more cash will be

generated. As a result of 'economies of scale' (a basic assumption of the BCG Matrix), it is

assumed that these earnings will grow faster the higher the share. The exact measure is the

brand's share relative to its largest competitor.

The overall goal of this ranking was to help corporate analysts decide which of their businessunits to fund, and how much; and which units to sell. Managers were supposed to gain

perspective from this analysis that allowed them to plan with confidence to use money generated

by the cash cows to fund the stars and, possibly, the question marks. As the BCG stated in 1970:

Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on

its growth opportunities. The balanced portfolio has:

stars whose high share and high growth assure the future; cash cows that supply funds for that future growth; and question marks to be converted into stars with the added funds.


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8. IE Matrix:The Internal-External (IE) matrix is another strategic management tool used to analyze working

conditions and strategic position of a business. The Internal External Matrix or short IE matrix is

based on an analysis of internal and external business factors which are combined into onesuggestive model.

The IE matrix is a continuation of the EFE matrix and IFE matrix models.

The IE matrix belongs to the group of strategic portfolio management tools. In a similar manner

like the BCG matrix, the IE matrix positions an organization into a nine cell matrix.

The IE matrix is based on the following two criteria:

1. Score from the EFE matrix -- this score is plotted on the y-axis

2. Score from the IFE matrix -- plotted on the x-axis


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The IE matrix works in a way that you plot the total weighted score from the EFE matrix on the

y axis and draw a horizontal line across the plane. Then you take the score calculated in the IFE

matrix, plot it on the x axis, and draw a vertical line across the plane. The point where your

horizontal line meets your vertical line is the determinant of your strategy. This point shows the

strategy that your company should follow.

On the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99 represents a weak

internal position. A score of 2.0 to 2.99 is considered average. A score of 3.0 to 4.0 is strong.


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9. Grand matrix:This is also an important matrix of strategy formulation frame work. Grand strategy matrix it ispopular tool for formulating alternative strategies. In this matrix all organization divides into four

quadrants.

Any organization should be placed in any one of four quadrants. Appropriate strategies for an

organization to consider are listed in sequential order of attractiveness in each quadrant of thematrix.

It is based two major dimensions.

1. Market growth

2. Competitive position

All quadrant contain all possible strategies

Qurdant-1 contains that companys strong having competitive situation and rapid market

growth.Firms located in Quadrant I of the Grand Strategy Matrix are in an excellent strategicposition. These firms must focus on current market and appropriate to follow market penetration,

Qurdant-2 contains that companys having weak competitive situation and rapid market growth.Firms positioned in Quadrant II need to evaluate their present approach to the marketplace

seriously.

Qurdant-3 contains that companys weak competitive situation and slow market growth. The

firms fall in this quadrant compete in slow-growth industries and have weak competitive.

Qurdant-4 contains that companys strong competitive situation and slow market growth.Finally, Quadrant IV businesses have a strong competitive position but are in a slow-growth

industry. These firms have the strength to launch diversified programs into more promisinggrowth areas.


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10.QSPM Matrix:The Quantitative Strategic Planning Matrix (QSPM)

The last stage of strategy formulation is decision stage. In this stage it is decided that which wayis most appropriate or which alternative strategy should be select. This stage contains QSPM that

is only tool for objective evaluation of alternative strategies. A quantitative method used to

collect data and prepare a matrix for strategic planning. It is based on identified internal andexternal crucial success factors.

That is only technique designed to determine the relative attractiveness of feasible alternative

action.This technique objectively indicates which alternative strategies are best.

The QSPM uses input from Stage 1 analyses and matching results from Stage 2 analyses to

decide objectively among alternative strategies. That is, the EFE Matrix, IFE Matrix, andCompetitive Profile


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Limitations

1.Requires intuitive judgments and educated assumptions

2. Only as good as the prerequisite inputs

3. Only strategies within a given set are evaluated relative to each other

2.Advantages

1. Sets of strategies considered simultaneously or sequentially

2. Integration of pertinent external and internal factors in the decision making process

Key internal factors :

Research and Development

Computer Information

Finance/AccountingProduction/Operations

Key External Factors :

Economy conditionsSocial/Cultural/Demographic

/Environmental

Political/Legal/Governmental


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11.Conclusion:Falcon Cement Company is committed to diversity in a working environment

where there is mutual trust and respect and where everyone feels responsible for

the performance and reputation of our company. They are committed to safe and

healthy working conditions for all employees. They will not use any form of

forced, compulsory or child labor. and committed to working with employees to

develop and enhance each individual's skills and capabilities.


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12.RECOMMENDATION

Appropriate strategy for FALCON CEMENT is Market Development. FALCON CEMENTshould remain in the present business and should introduce present products in new

geographical area.

Following are necessary factors that must be present while choosing market development

strategy:

FALCON CEMENT has its own strong distribution channel.

FALCON CEMENT is very successful at what it does.

Untapped rural market and market of developing countries exist for FALCON CEMENTto cover.

FALCON CEMENT is operating locally. It means that company is such an industrywhich can be grown globally.


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13.REFERENCE:

http://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_

http://classof1.com/homework_answers/corporate_strategy/grand_strategy_selection_matrix/

https://www.google.com.pk/search?q=ie+matrix+sample

http://www.maxi-pedia.com/internal+external+IE+matrix

http://www.zainbooks.com/books/management/strategic-

management_30_grand-strategy-matrix-2.html

http://www.grandmatrix.com/forums/index.php

http://grand-nce.ca/research/matrix
http://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_http://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_http://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_http://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.grandmatrix.com/forums/index.phphttp://www.grandmatrix.com/forums/index.phphttp://grand-nce.ca/research/matrixhttp://grand-nce.ca/research/matrixhttp://grand-nce.ca/research/matrixhttp://www.grandmatrix.com/forums/index.phphttp://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.zainbooks.com/books/management/strategic-management_30_grand-strategy-matrix-2.htmlhttp://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_http://www.google.com.pk/search?hl=en-PK&source=hp&biw=&bih=&q=grand+matrix&meta=&oq=grand+mat&gs_

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